Thursday, February 27, 2014

Accountant For Contractors

There are approximately 200,000+ IT Contractors in the UK; and the number is only growing.

Every contractor has to choose one or the other trading methods, for contracting.

Mostly, IT Contractors choose to trade through the following:
  1. Limited Company
  2. Umbrella Company Services
While the first one offers you a "more take home" pay, latter offers you a peace of mind.

Using a Limited Company to trade, is still the preferred choice amongst Contractors. Purely because, it offers you freedom and a sense of business ownership; along with a better take home pay.

At the same time, Contractors are also often skeptical and a bit worried of choosing the first option - limited company contracting; and the reason is IR35 legislation.

Definition of IR35:

- IR35 is United Kingdom's tax legislation in place, to restrict and tax disguised employment. This means, it is for "those" permanent employees who are working as Contractors; wherein they actually should be working as permanent employees.

Genuine IT Contractors need not worry about IR35 legislation.

These are technical bits, and not everyone would entirely understand. For two reasons:
  1. IR35 legislation has a lot of grey areas
  2. We (Contractors) are not too savvy with those law and tax technical terms
So, the simple way to go about it is; hire an Accountant. Normally, an Accountant who specialises and deals only with Contractor, is known as a Contractor Accountant.

There are thousands of Accountants who claim themselves to be Contractor Accountants, have little or no real experience with Contractors OR Contractor Accounting.

It is also extremely difficult to distinguish between a real Contractor Accountant and a fake one.

We (ITContractorsUK.com) are a Contractor specialist site, and we have a panel of UK's award winning and some of the largest Contractor Accountants; who not only offer initial free advice, but also online accounting with fixed fee services. So that, you don't have to face any hidden charges!

Our Accountants use some of the most powerful bookkeeping tools in the industry:
  • IRIS
  • OpenBooks
  • Xero
  • Kashflow
  • QuickBooks
  • SAGE
  • ClearBooks
We are specialist Accountant For Contractors

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